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Robert Gordon University – BA Honours

Marketing
Communications
EXAM Review
Summary of core text;
including: lectures, core book and relevant internet sources
Adeel Qurashi
MC Exam Summary 1 General

Table of Contents
1 General ........................................................................................................................................ 5
1.1 Definition MC ................................................................................................................................ 5
1.2 Learn ............................................................................................................................................. 5
1.3 Corporate PR ................................................................................................................................. 5
1.4 Marketing PR ................................................................................................................................. 5
1.5 Marketing Mix ............................................................................................................................... 5
1.6 Promotional Mix ........................................................................................................................... 6
1.7 Promotion ..................................................................................................................................... 6
1.8 Sales Promotion ............................................................................................................................ 6
1.9 Marketing and Communications................................................................................................... 6
2 Marketing .................................................................................................................................... 7
2.1 Learn ............................................................................................................................................. 7
2.2 Marketing Communications.......................................................................................................... 7
2.3 Promotional Mix Factors ............................................................................................................... 7
2.4 Effective MC .................................................................................................................................. 7
2.5 Communication process ............................................................................................................... 8
3 Segmentation ............................................................................................................................... 9
3.1 Learn ............................................................................................................................................. 9
3.2 Definition ...................................................................................................................................... 9
3.3 Objective ....................................................................................................................................... 9
3.4 Criteria........................................................................................................................................... 9
3.5 Most succesful .............................................................................................................................. 9
3.6 Segmentation model ..................................................................................................................... 9
4 Media ......................................................................................................................................... 10
4.1 Learn ........................................................................................................................................... 10
4.2 Traditional media types .............................................................................................................. 10
4.3 New media .................................................................................................................................. 10
4.3.1 Digital Media ....................................................................................................................... 10
4.3.2 Use of ‘tools’ in new media ................................................................................................. 10

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MC Exam Summary 1 General

4.4 Media vehicle selection .............................................................................................................. 11


5 PR .............................................................................................................................................. 12
5.1 Learn ........................................................................................................................................... 12
5.2 PR Definition ............................................................................................................................... 12
5.3 Publicity definition ...................................................................................................................... 12
5.4 PR Types ...................................................................................................................................... 12
5.5 PR Publics .................................................................................................................................... 12
5.6 PR Vehicles .................................................................................................................................. 12
5.7 Cause related marketing ............................................................................................................. 13
5.8 Objectives of PR .......................................................................................................................... 13
6 Sponsorship ............................................................................................................................... 14
6.1 Learn ........................................................................................................................................... 14
6.2 Definition .................................................................................................................................... 14
6.3 Aim of sponsorship ..................................................................................................................... 14
6.4 Key considerations ...................................................................................................................... 14
6.5 Sponsorship ‘tools’ ...................................................................................................................... 14
7 Advertising ................................................................................................................................. 15
7.1 Learn ........................................................................................................................................... 15
7.2 Definitions ................................................................................................................................... 15
7.3 Reasons for advertising ............................................................................................................... 15
7.4 Barriers ........................................................................................................................................ 15
7.5 How advertising works ................................................................................................................ 15
7.6 AIDA ............................................................................................................................................ 15
7.7 Hierarchy of effects ..................................................................................................................... 16
7.8 Advertising model (process) ....................................................................................................... 16
8 Sales Promo ............................................................................................................................... 17
8.1 Definition .................................................................................................................................... 17
8.2 Key features ................................................................................................................................ 17
8.3 Sales promo objectives ............................................................................................................... 17
8.4 Sales promo approach ................................................................................................................ 17
8.5 Aim Customer loyalty programmes ............................................................................................ 17
8.6 Objective Customer loyalty programmes ................................................................................... 17

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MC Exam Summary 1 General

9 Direct Marketing ........................................................................................................................ 18


9.1 Definition .................................................................................................................................... 18
9.2 Tools ............................................................................................................................................ 18
9.3 Advantages .................................................................................................................................. 18
9.4 Disadvantages ............................................................................................................................. 18
10 Design, Packaging and Merchandising, POS ................................................................................ 19
10.1 Design packaging Concern .......................................................................................................... 19
10.1.1 Good design ........................................................................................................................ 19
10.2 Labels .......................................................................................................................................... 19
10.3 Branding advantages................................................................................................................... 19
10.4 Golden Rules of Branding............................................................................................................ 19
10.5 Merchandising ............................................................................................................................ 20
10.6 POS .............................................................................................................................................. 20
10.7 Six steps to an improved Identity ............................................................................................... 20
11 Advertising Agencies .................................................................................................................. 21
11.1 Learn ........................................................................................................................................... 21
11.2 Advertisers options ..................................................................................................................... 21
11.3 Types of agencies ........................................................................................................................ 21
11.4 Benefits ....................................................................................................................................... 21
11.5 Key staff agency .......................................................................................................................... 21
11.6 Review agencies .......................................................................................................................... 21
11.7 Selection Criteria ......................................................................................................................... 22
11.8 Partnership .................................................................................................................................. 22
11.9 Barriers to partnership ................................................................................................................ 22

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MC Exam Summary 1 General

1 General
1.1 Definition MC
The process of presenting an integrated set of stimulus to a market with the intent of evoking desired
responses within that market set and setting up channels to receive, interpret and act upon messages
from the market for the purposes of modifying present company messages and identifying new
communication opportunities - Delozier (1976)

‘The process by which a marketer develops and presents stimuli to a defined target audience with the
purpose of eliciting a desired set of responses’ (Yeshin)

‘All elements in a brand’s marketing mix that facilitate exchanges by establishing shared meaning with
customers’ (Shimp)

1.2 Learn
Consider learning Marketing Research; though not very significant

1.3 Corporate PR
Cutlip et al (1985) ‘a function of management seeking to identify, establish and maintain mutually
beneficial relationships between an organisation and the various publics on whom its success or failure
depend’

1.4 Marketing PR
Cutlip et al (1985) ‘not only concerned with organisational success and failure, but also with specific
publics: customers, consumers and clients with whom exchange transactions take place’

1.5 Marketing Mix


The 7 p’s

 Price
 Promotion
 Place
 Product
 Physical
 People
 Process

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MC Exam Summary 1 General

1.6 Promotional Mix


A business' total marketing communications programme is called the "promotional mix" and consists of
a blend of advertising, personal selling, sales promotion and public relations tools

 Advertising
 Personal Selling
 Sales Promotion
 Publicity

1.7 Promotion
Promotion involves disseminating information about a product, product line, brand, or company. It is
one of the four key aspects of the marketing mix.

1.8 Sales Promotion


“An activity designed to boost the sales of a product or service. It may include an advertising campaign,
increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging
demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price
reductions, door-to-door calling, telemarketing, personal letters on other methods”.

 Price promotions
 Coupons
 Gift with purchase
 Competitions and prizes
 Money refunds
 Frequent user / loyalty incentives
 Point-of-sale displays

1.9 Marketing and Communications


Messages and related media used to communicate with a market.

 Advertising
 Branding
 Direct marketing
 Graphic design
 Marketing
 Packaging
 Promotion
 Publicity
 Sponsorship
 Public relations
 Sales
 Sales promotion
 Online marketing

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MC Exam Summary 2 Marketing

2 Marketing

2.1 Learn
- Where does MC fit in
- How does MC work

2.2 Marketing Communications


 Advertising
 Sponsorship
 Design/Packaging
 Sales Promotion
 P.R./Publicity
 Direct Marketing

2.3 Promotional Mix Factors


 Resources available
 Promotional message
 Complexity of product/service
 Market type/size/location
 Distribution
 Marketing strategy/life-cycle stage
 State of buyer readiness
 Competitors’ actions

2.4 Effective MC
 Effective communication involves sending a stimulus to the senses and gaining a response - a
two way process
 Messages received depend on the sender, the tone and the language
 Message persuasiveness affects response
 Audiences need to be on the same wavelength - interpretation is critical
 Response and understanding stem from existing knowledge and attitudes
 Repositioning is more difficult - reinforcement is more effective than conversion
 Advertisers have low credibility - they are expected to be biased
 Actions speak louder than words?
 All organisations communicate
 Images and impressions have a profound effect on success (the ‘Branson’ factor)

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MC Exam Summary 2 Marketing

 Who do they target? Two step and multi step models


 Introduce opinion leaders, style leaders (influencers) and listeners rather than the mass
audience

2.5 Communication process

Schramm (1955)

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MC Exam Summary 3 Segmentation

3 Segmentation

3.1 Learn
How to decide upon target market

3.2 Definition
‘The division of the market into customer subsets, one or more of which becomes the target market,
each with a distinct marketing mix

3.3 Objective
To identify populations that offers an opportunity to focus clearly on their needs and satisfy them

3.4 Criteria
 Geography
 Demographics (age/sex/family/income/ occupation/family life cycle)
 Geo-demographics
 Psychographics (lifestyles, reflecting social class, personalities, etc.)
 Behaviour traits (in terms of purchasing occasions, benefits sought, loyalty status, etc.)

3.5 Most succesful


 Most successful when targeted segments and strategies are:
 Measurable and identifiable
 Substantial and profitable
 Accessible
 Actionable

3.6 Segmentation model


Stage One: Market Segmentation
Identify customer needs and segment the market
Develop profiles of resulting segments
Stage Two: Target Marketing
Evaluate attractiveness/growth potential
Select target segments
Stage Three: Market Positioning
Identify differential advantage for each segment
Formulate marketing/communications strategy
Stage Four: Market Planning
Develop plans for each segment
Develop marketing organisation

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MC Exam Summary 4 Media

4 Media
4.1 Learn
- Combination of traditional media (tv, radio,billboards) and how they started to lose out to new
media (internet) and overall

4.2 Traditional media types


 Tv
 Outdoor
o Billboards
o Stadia/trackside advertising
o Vehicle sides
o Miscellaneous
 Press
 Newspaper
 Magazines
 Radio
 Cinema

4.3 New media


 Internet
 Mobile phones
 Computer games
 Multimedia/CD-rom
 Digital television

4.3.1 Digital Media


 Add depth and engagement to standard advertising strategies
 Generate leads on a cost per acquisition basis through paid search
 Employ multiple channels: ‘media meshing’
 But ... the web and mobiles do not replace ‘offline’ media.

4.3.2 Use of ‘tools’ in new media


 Video
 Sound and music
 Graphics
 Animation
 Internet links

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MC Exam Summary 4 Media

4.4 Media vehicle selection


Choice criteria:
 Audience profile
 Product nature
 Message types
 Reach/cost
 Reproduction quality/prestige/image
 Submission deadlines

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MC Exam Summary 5 PR

5 PR
5.1 Learn
 Types of PR
 Who are they looking to address (PR audiences)
 Methodologies

5.2 PR Definition
‘All forms of planned communications between any organisation and its publics with the purpose of
establishing mutual goodwill and understanding’ (Yeshin)

‘Encoding and communicating messages to targeted audiences in order to influence a desired response’
(PRCA)

5.3 Publicity definition


Any communication concerning a company, product or service which is not paid for, or sponsored’
(Yeshin)

5.4 PR Types
 Marketing P.R.
 Defensive/reactive P.R. (issues management)
 Proactive P.R. (lobbying)
 Corporate P.R. (stakeholder relations)

5.5 PR Publics
 Commercial
 Internal
 Financial
 Authorities
 Media
 Opinion formers
 Community/society

5.6 PR Vehicles
• Media contact
• News stories/Press releases
• Advertiser funded programmes/advertorials
• Media events
• Press office
• Sponsorships/Exhibitions
• Corporate hospitality

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MC Exam Summary 5 PR

5.7 Cause related marketing


 PR
 Sales Promotion
 Corporate philanthropy
... where customers engage in commercial exchanges with firms that produce revenue for good
causes e.g. Comic Relief, Tesco’s Computers for Schools, RSPCA mastercard

5.8 Objectives of PR
 Create/maintain identity and image
 Enhance the organisation’s standing
 Communicate its philosophy and purpose and the benefits of its products and services
 Improve media relations/manage publicity
 Develop good employee relations
 Aid liaison with and lobbying of key publics
 Plan/manage crises and situations

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MC Exam Summary 6 Sponsorship

6 Sponsorship
6.1 Learn
- How it works
- Gaining prestige, additional value
- Budget and targeting

6.2 Definition
‘The connection of a company/product with a public event in which the manufacturer covers part or all
of the costs in return for the benefit of association’ (Yeshin)

‘Investment by a company in special events or causes in order to achieve promotional or corporate


objectives’ (Shimp)

6.3 Aim of sponsorship


 Develop customer/consumer relationships
 Foster goodwill
 Build profile/prestige/reputation/image
 Enhance brand equity
 Increase brand name retention and reduce brand decay
 Generate financial return (sales/market share)

6.4 Key considerations


 Relevance to target audience/brand
 Value for money
 Media coverage available i.e. PR potential
 Can media coverage be leveraged? (e.g. innovative use of media)
 Compatibility
 Integration potential
 Lifespan/long term value
 Uniqueness/popularity
 What elements are contracted? (Beware ‘ambush’ marketing!)
 Editorial v. advertising value

6.5 Sponsorship ‘tools’


 Active in sport, education, the arts, media, charitable enterprises, etc.
 Supports employee/government/community relations through emphasising social responsibility
 Typically a support communications activity

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MC Exam Summary 7 Advertising

7 Advertising
7.1 Learn
- Why advertise
- When to advertise
- How does it work
- Background info
o Aida
o Hierarchy of effects

7.2 Definitions
 Any form of paid-for media used by marketers to communicate with their target audiences’
(Yeshin)
 ‘Mass or direct-to-consumer non-personal communication paid for by a firm or individual
identified in the advertising message, hoping to inform or persuade a specific target audience’
(Shimp)

7.3 Reasons for advertising


 Differentiates standard products
 Reaches large numbers of end users i.e. where purchase amounts are small and volumes are
high
 Bypasses intermediaries
 Supports new products
 Highlights auxiliary services
 Reinforces status and justifies premiums

7.4 Barriers
 Insufficient resources
 Unquantifiable benefits
 Lack of focus
 Talking a good game, not playing one

7.5 How advertising works


 Persuasion model
 Recency model
 Low involvement processing
 Permission marketing

7.6 AIDA
Awareness – Interest – Desire - Action

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MC Exam Summary 7 Advertising

7.7 Hierarchy of effects


Attention - Knowledge – Liking – Preference – Action

7.8 Advertising model (process)


A chain of processes must be initiated:

• Creating a cognitive structure (message considered and understood)

• Creating a motivational (affective) structure (changes attitudes)

• Creating a behavioural (conative) structure (brings about action)

Complex and interrelated, sometimes incomplete or in a different order

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MC Exam Summary 8 Sales Promo

8 Sales Promo

8.1 Definition
The use of short-term, often tactical, techniques to achieve short term sales objectives’. (Yeshin)

‘Marketing activities intended to stimulate quick buyer action by offering extra benefits to customers’
(Shimp)

8.2 Key features


 Uses traditional and new or ‘alternative’ media
 Takes place (usually) over a pre-determined or limited period
 At consumer, retailer or wholesaler levels
 Stimulates trial/increases demand/increases availability

8.3 Sales promo objectives


 Creating awareness and generating trial
 Rewarding loyalty
 Increasing repeat purchase
 Widening usage
 Renewing/adding value
 Creating interest
 Gaining intermediary support and display

8.4 Sales promo approach


 PULLS the product through the channel by appealing to (all? deal prone? loyal?) consumers
 PUSHES the product into the channel by incentivising intermediaries
 ENCOURAGES the sales force e.g. payment by commission

8.5 Aim Customer loyalty programmes


 Avoid short termism
 Build relationships with targeted groups
 Respond to customer needs/profiles
 Track purchase patterns
 Generate additional sales by appealing to existing customers and winning new ones

8.6 Objective Customer loyalty programmes


 Increased sales, profit and market share
 Increased frequency of purchase
 Increased spend
 New customers
 Relationship building and customer loyalty

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MC Exam Summary 9 Direct Marketing

9 Direct Marketing
9.1 Definition
Communications where data are used systematically to achieve quantifiable marketing objectives and
where direct contact is invited or made between a company and its customers’ (DMA UK)

‘An interactive system of marketing which uses one or more advertising media to effect measurable
response and/or transactions at any location’ (ADMA)

9.2 Tools
 Direct Mail
 Telemarketing, e-mail and SMS/mobile marketing
 Direct Response Advertising (including ‘digital interactive’)
 Field marketing
 Inserts
 Door to Door/on location leafleting
 Mail Order catalogues/customer mags

9.3 Advantages
 Reduces wastage (cost efficient/targeted)
 Provides measurable results
 Establishes direct links with consumers
 Replaces monologue with dialogue
 Customises product offers
 Immediate mass/micro marketing

9.4 Disadvantages
 Intrusive nature
 Image
 Set up costs
 Distribution channel conflict
 List problems

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MC Exam Summary 10 Design, Packaging and Merchandising, POS

10 Design, Packaging and Merchandising, POS


10.1 Design packaging Concern
 Quality level/consistency
 Features
 Design

10.1.1 Good design


 Attracts attention
 Improves product performance
 Cuts production costs
 Gives competitive advantage

10.2 Labels
 Identify the product
 Grade the product
 Promote the product
 Legislation should prevent:
 Misleading/insufficient information
 Inadequate safety precautions

10.3 Branding advantages


 Helps identification
 Helps evaluate quality
 Reduces risk
 Conveys status
 Facilitates n.p.d.
 Spreads promotional benefits
 Leads to increased loyalty/product value

10.4 Golden Rules of Branding


 Ensure product quality lives up to image
 The first brand gets the best grazing
 Adopt an unique positioning concept
 Don’t change it without good reason
 Tell the target market
 Repeat the message with consistency
 No point branding a dead cow!

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MC Exam Summary 10 Design, Packaging and Merchandising, POS

10.5 Merchandising
Effective product display and promotion at the point of sale intended to:
 Make more efficient use of floor space
 Increase visibility for consumers
 Improve retail traffic flow/allow signposting
 Attract attention and communicate offers
 Complement image and increase sales

Aim is to allow as wide a range as possible to be stocked, whilst:


 Maintaining aisle width/minimising clutter
 Encouraging browsing
 Allowing easy access/product identification
 Focusing on most profitable lines
 Not making the outlet seem overwhelming

10.6 POS
 Shelf edge material/shelf display units
 Window/on shelf displays
 Dump bins/off shelf/gondola end displays
 Posters/cut outs/showcards
 Shelf space/colour blocking
 Video walls/spotlighting/interactive systems

10.7 Six steps to an improved Identity


 Know your market
 Analyse your product/service
 Establish actual and potential USPs
 Determine effective strategies
 Monitor, evaluate and control
 Tell what you sell

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MC Exam Summary 11 Advertising Agencies

11 Advertising Agencies
11.1 Learn
 How many would you invite
 How to review agencies

11.2 Advertisers options


 Develop advertising through the media
 An ‘in house’ advertising department
 Use a communications consultancy
 Use a combination of both!
 Use a full service advertising agency
 Use specialist agencies

11.3 Types of agencies


 Full service agencies provide all round skills and experience, objectivity and an integrated
approach, but lack specific expertise
 A la carte approach ensures specialist expertise, but may be less well coordinated
 Choice depends on client ability, overall budget and communication requirements

11.4 Benefits
 Reduced contact costs
 Time savings
 Specialist knowledge
 Economies of scale
 Creative qualities

11.5 Key staff agency


 Managing Director
 Account team
 Creative team
 Production/traffic department
 Planning department
 Media planners/buyers
 General management services

11.6 Review agencies


 Statutory reasons
 Keep an agency on its toes
 Unsuccessful advertising
 Poor agency performance
 Finding out what’s there
 New client personnel

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MC Exam Summary 11 Advertising Agencies

11.7 Selection Criteria


 Creative ideas/strategy
 Media buying/planning proposals
 Personnel
 Agency approach (including size issues)
 Agency background/expertise/geography
 Services offered
 Cost

11.8 Partnership
Benefits from meeting expectations based on:
 Agency market knowledge (woods and trees?)
 Successful creative executions
 Proactive/reactive approach as required
 Through the line solutions
 Media performance (media neutral planning)
 Communication and reward

11.9 Barriers to partnership


 Junior decision makers/lack of board access
 Unfair remuneration (clients wanting more for less!)
 Poor/unclear briefs
 Lack of trust/openness
 Lack of time
 Client personnel changes
Source: AAR/Express Train

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